HANDS
HELPING
ANSWERS
DECISION
SERVICE
Strategies for HANDS exploitation
Tommaso Ricci, Eunics S.p.A.
1
HANDS Workshop
Bologna, June 29, 2007
Table of Contents
1.
2.
Main issues for HANDS dissemination
Marketing Analysis
–
–
–
–
3.
4.
2
HANDS positioning
Business Model
Offer Definition
EU Market Evaluation
Deployment plan
Conclusions
Workshop
Bologna – June 29, 2007
1) Main issues for
HANDS dissemination




Q:What is the business value of the HANDS project?
Q: How to deliver HANDS for the first three years after
the end of the project?
Q: Who will distribute and use HANDS?
Q: What results/benefits are expected in short, medium
and long term?
The Business Model and Deployment Plan
3
Workshop
Bologna – June 29, 2007
Table of Contents
1.
2.
Main issues for HANDS exploitation
Marketing Analysis
–
–
–
–
3.
4.
4
HANDS positioning
Business Model
Offer Definition
EU Market Evaluation
Deployment plan
Conclusions
Workshop
Bologna – June 29, 2007
STARTING POINTS
The HANDS Consortium has endorsed the strategic
decision to make the HANDS software freely available,
under general Open Source conditions.

Anyway,
there are a number of ways in which
commercial services can add value to it and constitute a
return of investments for Hands Partners.
Therefore,
a detailed set of professional services and a
corresponding price-list has been defined in the Hands
Product catalogue
5
Workshop
Bologna – June 29, 2007
MARKETING ANALYSIS

Marketing analysis includes :
–
–
–
–
–
6
Target Market definition
Hands vs Competitors positioning
Offer definition, including services and related pricelist
Emphasis on how services have to be deployed
(Business Process)
and how to position HANDS on the EU market
Workshop
Bologna – June 29, 2007
MARKETING ANALYSIS
Target Market
Initially, our main target groups will be EU Public
Administrations and Utilities, because:




7
PB are confident in OSS
HANDS, as an OSS application, has no market
competitors, in this sector
Leverage Experience and Best Practice related
to PBs application domains
European presence
Workshop
Bologna – June 29, 2007
HANDS POSITIONING
vs COMPETITORS

HANDS characteristics put our proposal in a unique position:
–
–
–
8
NLP technology-based
eGov/eDemo service
Open Source
Workshop
Bologna – June 29, 2007
Business Model
9
Workshop
Bologna – June 29, 2007
Business Process

HANDS defined two Business Processes; three main
actors are involved in the HANDS service delivery:
–
–
–


10
Commercial partner(s): supplier(s) for HANDS (technology and
service providers).
Public Bodies: Public Authorities or Utilities, who will Purchase
HANDS service to Commercial partners.
Final Users: The real users of the service, who will use HANDS
provided by Public Bodies.
Professional Services will be provided as part of
Business Process #1.
The main assumption for Business Process #2 is that
services provided by PBs to citizens/customers are free
of charge.
Workshop
Bologna – June 29, 2007
THE BUSINESS MODEL

Commercial Partners will provide:
–
–
–

Distributors :
–
–
11
HANDS SW free distribution
A set of related Professional Services
Service Hosting, as ASP
Country Partner
Sales Partner
Workshop
Bologna – June 29, 2007
Offer Definition:
SERVICES CATALOGUE

Professional Services (on site / remote):
–
–
–
–
12
Installation on PB’s site
Maintenance (help desk, bug fix, SW upgrade)
through Web, Email, phone, ...
Training activities
Consultancy
Workshop
Bologna – June 29, 2007
Offer Definition
ASP services
13

ASP SERVICES (formerly HOSTING) are addressed to those PBs
with no ICT infrastructure or requiring a Test Plant; the service fee
has been separated into two different voices:

A start-up fee (only for the first year), to install HANDS in
commercial partners’ data centre and configuring with logo, fonts
and colours of the customers (light customisation).

A yearly fee (including the first one), to guarantee the HANDS
availability. It includes also the access to a technical and
methodology course, the online support (help-desk, mail system,
web forms, etc.), the backup activities for customer’s database,
etc.
Workshop
Bologna – June 29, 2007
Offer Definition:
BUNDLES
A BUNDLE is a common set of services from the Catalogue, that fits,
at best, different customers’ needs

BASIC BUNDLE
–
–
–
–

Remote Installation
Distance learning ICT Training
Distance learning Methodology Training
Maintenance (help-desk, bug fixing, etc.)
PREMIUM BUNDLE: As Basic plus 6 days for on-site activities
(customisation, onsite courses, etc)

SUPERIOR BUNDLE: As Basic plus 15 days for on-site activities
(customisation, onsite courses, etc)
14
Workshop
Bologna – June 29, 2007
OFFER DEFINITION
Catalogue of Professional Services
•Superior/Advanced Superior
•Premium/ Advanced Premium
•Advanced
•Basic
Bundles
•Superior
•Premium
•Basic
ASP services
15
Workshop
Bologna – June 29, 2007
EU MARKET Evaluation
•PB’s Market Segmentation
•A questionnaire sent by the HANDS Consortium reported:
• WHAT??????
•Results from questionnaires have been used to validate the Sales
Funnels
•Pilot Testing Sessions performed directly by some PBs reported:
•useful feedbacks in terms of HANDS usability and benefits for final
users
•Analisys of a sample of Italian utilities; it showed that:
•Prospective customers should already have a proper knowledge base
•“Big Utilities” IS the market for HANDS
•The ASP product IS the product to be promoted
16
Workshop
Bologna – June 29, 2007
EU Market Evaluation
17
Workshop
Bologna – June 29, 2007
EU Market Evaluation
18
Workshop
Bologna – June 29, 2007
EU Market Evaluation

Market segmentation of Public Administrations
and Utilities has been identified from:
–
–
19
market data sources for PAs in Germay, Italy and UK
market data sources for Multi-Utilities (Electricity, gas
and water supply) by EUROSTAT (updated to Feb
2007)
Workshop
Bologna – June 29, 2007
Market Segmentation
Market Segmentation activity has been made to define a relation
between the Public Administrations/Utilities dimensions and
HANDS offer. The results are quite similar for Italy and
Germany, both for PAs and for Utilities, in terms of absolute
and relative numbers, whereas the results are very different
for UK.
–
About PAs:


–
About Multi-Utilities:


20
Germany and Italy have a large number of small and medium
PAs, a small number of big and metropolitan PAs.
UK has a large number of big and metropolitan PAs, and small
number of small and medium PAs.
Germany and Italy have a large number of small and medium
utilities, a small number of big utilities.
In United Kingdom the number of Utilities is almost 10 times
lower than in other 2 countries. The analysis showed that in UK
there are few Utilities, but with high revenues.
Workshop
Bologna – June 29, 2007
MKGT PLAN - Questionnaire

To support the MKGT analysis HANDS consortium decided to
prepare and distribute a specific questionnaire addressed to other
Public Administrations
.


HANDS’ partners sent about 200 questionnaires and received 62
answers. This is a very good result considering the type of
communication (a questionnaire via e-mail, no phone calls or
personal contacts), the limited informative material, …
Most interesting results to be considered are:
–
–
–
21
The number of PAs which have already installed an NLP tools is 8
above 62 (13%) and inside these, 7 PAs (87%) are fully satisfied.
54 PAs (87%) have already planned investments to improve citizens
and customers relations and 45 of them (83%) have planned
investments in the next two years.
Finally and most important, 49 PAs above 62 (79%) confirmed that
HANDS could support their investment strategy; an additional 16
asked for more detailed information.
Workshop
Bologna – June 29, 2007
Table of Contents
1.
2.
Main issues for HANDS exploitation
Marketing Analysis
–
–
–
–
3.
4.
22
HANDS positioning
Business Model
Offer Definition
EU Market Evaluation
Deployment plan
Conclusions
Workshop
Bologna – June 29, 2007
3) DEPLOYMENT PLAN
1.
HANDS Group definition
–
–
–
2.
3.
4.
5.
23
Hands Partner
Distributors – Partnership Program
Web Site
Marketing Strategy for 1-3 years
Financial Plan
Future Development Plan
Promotional Plan
Workshop
Bologna – June 29, 2007
Hands Group :
some definitions
24

HANDS Group: the proposed federated network, created by the
HANDS Project Partners after the end of the HANDS Project, in
charge of disseminating HANDS around Europe

HANDS Distributors: Country Partner/Sales Partner

HANDS Customers: the Public Bodies who will request HANDS
Professional Services to Commercial Partners.

HANDS Enhancements: the new software to be developed for
future extensions and increase HANDS Features. These
enhancements could be developed by any Partner and will be
returned free-of-charge to HANDS Group.
Workshop
Bologna – June 29, 2007
HANDS GROUP:
Distributors





25
There are various distributors’ roles: disseminating HANDS, selling
the HANDS professional services, supporting customers, etc.
To support the different levels of participation they are able to
perform, the following two partnership programs will be proposed:
Country Partners: companies who want to forge a strategic and
unique relationship with Commercial partners to disseminate
HANDS and to deliver HANDS professional services in their
countries or regions. This level of partners will be able to manage
other distributors or developers at country level.
Sales Partners: companies who will only disseminate HANDS and
sell HANDS professional services and products, to be delivered by
Commercial partners or by other Country Partners.
Companies who want access to a specific program need to be
certified, following training courses and demonstrating their ability
in supporting and managing Public Administrations and MultiUtilities as customers.
Workshop
Bologna – June 29, 2007
The Deployment Plan
HANDS GROUP
The
HANDS Group will be finalized as a Community of Best practices and
Developers
A “deployment
agreement” will be signed by HANDS Group Community in
order to identify simple rules for managing the overall activity
Professional
Services will be delivered mainly by Regulus/EUNICS or by
Distributors in their countries
Each
distributor will fix its prices and SLA of the services, together with
Regulus/EUNICS, according to country and market values; a “distributor
agreement” will be signed to support the business in Europe
Expert
Partners (e.g. Eurocities, Napier, HANDS Pilot Partner) will support
the HANDS dissemination and future Enhancement
26
Workshop
Bologna – June 29, 2007
THE HANDS GROUP
Expert
Partners
Pilot Partners
Bologna
Eurocities
Enìa
Napier
Edinburgh Saarbruecken
Deployment
Agreement
HANDS
Group
Commercial
Partners
Technical
Enhancers
Regulus
Eunics
New
Customers
Distributors
27
Workshop
Bologna – June 29, 2007
Hands Group

The HANDS Group will act as a “Community” and allow
people to collaborate and share information
–
–
–
–
28
The Website will allow: Demonstrations, HANDS SW download,
request for professional services, trouble notifications, technical
support, etc
HANDS Group will be a “Sharing Community” where not only the
software will be shared, but also PBs experiences and databases will
be made available.
HANDS Group will be a “Qualified Community” because each
subscriber will have to share or “to add value” for the community in
terms of: software, databases, best practice, knowledge, etc.
Commercial Partners will administer and supervise the Community
contributions on the web
Workshop
Bologna – June 29, 2007
THE BUSINESS MODEL Proposition:
EU Market Evaluation
HANDS endorses the actions suggested by the EC in
order to deliver usable and sustainable e-services for
citizen.
The HANDS goals are:
to
respond positively to citizen and customer demand for more
usable services
to extend accessibility of services through more support and help on
websites
to provide accessible information in response to enquiries
to reduce ICT costs by using OSS and already prepared
documentation
to provide services ready to be used anytime and anywhere on
different delivery channels
29
Workshop
Bologna – June 29, 2007
THE BUSINESS MODEL Proposition:
EU Market Evaluation
Based on Market Segmentation,
Questionnaire results, Pilot Evaluation,…
HANDS adopted a 1-3 year Strategy for
selling Hands Services in some European
Countries
30
Workshop
Bologna – June 29, 2007
Marketing Strategy for Years 1-3
Year 1
Year 2
31
Target Markets
Germany
Characteristics
 High volume Customers
 High expected penetration
 Language ready
Priorities
Identify Country Partner to
develop and implement Strategic
Sales Plan.
Italy
 High volume Customers
 High expected penetration
 Language ready
Managed directly by the present
HANDS commercial Partners.
UK
 Important market but low
volume of Customers
 Very low penetration expected
 Language ready
Austria
 Interesting volume Customers
 Medium expected penetration
 Language ready, to be tuned
Market not planned at present.
Inspect the possibility to develop
Strategic Marketing and Sales
Plan to be implemented in
subsequent years.
Managed directly by the present
HANDS commercial Partners.
Ireland
 Low volume Customers
 No expected penetration
 English language ready,
Gaelic tbp
Workshop
Market not planned at present.
Inspect the possibility to develop
Strategic Marketing and Sales
Plan following the UK market plan.
Bologna – June 29, 2007
Marketing Strategy for Years 1-3
Year 3
32
France
 High volume Customers
 High expected penetration
 Language to be
developed
Identify a Sales Partner in France.
Technical services provided directly by
the present HANDS commercial
Partner. Managed directly by the
present HANDS commercial Partner
Belgium
 Interesting volume
Customers
 Low expected penetration
Flemish to be completed
Market not planned at present.
Inspect the possibility to develop
Strategic Marketing and Sales Plan
following the France market plan.
The Netherlands
 Interesting volume
Customers
 Low expected penetration
 Dutch to be developed
Market not planned at present.
Inspect the possibility to develop
Strategic Marketing and Sales Plan
following the France market plan.
Workshop
Bologna – June 29, 2007
SALES FUNNEL
Discovering
Qualifying
33%
Communicating
50%
Evaluating
HANDS
Offering
Business
Products
50%
25%
Ordering
50%
Recurring Customers
250
200
First Year
Second Year
Third Year
150
100
50
0
33
Workshop
Pessimistic
Realistic
Optimistic
Bologna – June 29, 2007
Indicative Financial Plan




34
Based on Marketing Strategies,a Service Catalogue
and Price-List and a Sales Funnel, HANDS has
developed a Financial Plan
A Break Even analysis table shows that HANDS
partners will reach the break even point within the third
year
Also the Country Partner in Germany, will be able to
reach a positive result starting from the first year of
activity.
Also the Sales Partner in France, will be able to reach a
positive result starting from the first year of activity.
Workshop
Bologna – June 29, 2007
HANDS - BUSINESS FIGURES
COMMERCIAL PARTNERS
Profit & Loss
€ 500.000,00
€ 400.000,00
€ 300.000,00
Pessimistic
€ 200.000,00
Realistic
€ 100.000,00
Optimistic
€ 0,00
-€ 100.000,00
First Year
Second Year
Third Year
-€ 200.000,00
Cash Flow
Break-Even Analysis
€ 400.000,00
€ 300.000,00
€ 200.000,00
€ 100.000,00
€ 0,00
-€ 100.000,00
-€ 200.000,00
-€ 300.000,00
-€ 400.000,00
-€ 500.000,00
-€ 600.000,00
35
€ 350.000,00
€ 300.000,00
€ 250.000,00
€ 200.000,00
€ 150.000,00
First Year
Second
Year
Third Year Fourth Year
Balance
€ 100.000,00
Cash Flow
€ 50.000,00
€ 0,00
-€ 50.000,00
First Year
Second Year
Third Year
-€ 100.000,00
-€ 150.000,00
Workshop
Bologna – June 29, 2007
Future Development Plan
New Features will increase and extend the HANDS value
proposition; e.g.:
 Adding new domains and creating sets of base
documents;
 Adding new languages;
 Adding new delivery channels (mobile phones pages,
digital television, etc.);
 Extending functionalities according to PBs requests;
 Creating sales-marketing toolkits;
 and sharing everything in the HANDS group
36
Workshop
Bologna – June 29, 2007
Promotional Plan






37
Communication efforts and campaign strategies, for the first year,
will be focused mainly on promoting HANDS, selling Professional
Services and identifing new Distributors.
the logo, name and message (“Questions in your minds, answers
in your HANDS”) will be copyrighted
HANDS White Paper will be used outside of the consortium for
promotional activities
The HANDS Group web site will be the main asset for marketing
strategy, together with the help of Pilot Partners in disseminating
their success stories. As soon as the web site is online, Regulus
will register HANDS in all web sites for Open Source databases
and repositories;
Fairs, conferences, congresses etc. will be used to increase
HANDS knowledge and sales.
Additional Distributors for European countries will be selected.
Workshop
Bologna – June 29, 2007
Table of Contents
1.
2.
Main issues for HANDS exploitation
Marketing Analysis
–
–
–
–
3.
4.
38
HANDS positioning
Business Model
Offer Definition
EU Market Evaluation
Deployment plan
Conclusions
Workshop
Bologna – June 29, 2007
Conclusions
The aim of the project was to perform a market validation process to
investigate the administrative and economic viability of the “HANDS
service” product. Also to identify the conditions for its future deployment on
a European scale.
HANDS potentially met the objective by:







assuming the strategic decision of adopting Open Source Software model in the Public Body
sector,
Defining the HANDS Group as the main actor of HANDS deployment,
Identifying the Hands Community organizational plan,
Defining the Hands Business model and process,
Defining a corresponding Deployment plan and Promotional Plan,
Establishing a 3 year - Market Strategy for Hands dissemination and deployment in Europe,
Defining New features which will increase and extend the HANDS value proposition.
The Financial Plan shows a positive business development, with a Break
Even point foreseen for Commercial Partners within the next 3 years.
Depending on the market evolution, the strategy will be continuously adapted
to face the new challenges
39
Workshop
Bologna – June 29, 2007
Demonstration
Would you like to see our PROJECT at work?
PLEASE MEET OUR EXPERTS AT THE LIVE
DEMONSTRATION DESK
40
Workshop
Bologna – June 29, 2007
HANDS
Thank you
41
Descargar

Conferenza 29giugno T.Ricci, Eunics S.p.A.